R18

What Is ACH Return Code R18?

ACH return codes are used to identify the reason an ACH payment has been returned by the recipient's bank. They make it easier for originating and receiving financial institutions to spot and communicate payment failures.

ACH Return Code R18, also known as "Improper Effective Entry Date," is a standard code used in Automated Clearing House (ACH) transactions. It indicates that the entry in the ACH file has an effective entry date that is inconsistent with the processing requirements or rules established by the receiving financial institution—essentially the date associated with the transaction is valid.

How To Address ACH Return Code R18

Nacha prescribes separate rules for handling each return code since each one represents a unique scenario. ODFIs (Originating Depository Financial Institutions) and RDFIs (Receiving Depository Financial Institutions) are responsible for handling ACH return codes according to these rules.

This return code is not common and is officially defined by Nacha as, "the effective Entry date for a credit Entry is more than two Banking Days after the Banking Day of processing as established by the Originating ACH Operator; or the Effective Entry Date for a debit Entry is more than one Banking Day after the processing date.” The RDFI must return the transaction with code R18 within the next file delivery time following processing.

If you encounter R18, you can reach out to the receiving financial institution to see if they can provide any additional details about the return. In most cases, the best course of action is to re-enter all the relevant information and attempt your transaction again.

What Is An ACH Return Code?

ACH return codes identify the reason an ACH payment was returned by the recipient's bank. They make it easier for originating and receiving financial institutions to spot and communicate payment failures. Each code begins with 'R' followed by a two digit number. ACH return codes are standardized and maintained by NACHA, the governing body for the ACH network.